Listing: Overview, definition and example
What is a listing?
Listing refers to the process of creating an official record or catalog of items, properties, or assets that are being offered for sale, lease, or inclusion in an inventory. In the context of real estate, a listing typically refers to the formal inclusion of a property for sale or rent in a real estate database or market. In other industries, such as finance or business, a listing can refer to the inclusion of securities, shares, or business products in a public market or directory.
For example, in a real estate transaction, a listing could be a property that is officially listed for sale by a real estate agent, including details such as price, location, and features.
Why is listing important?
Listing is important because it serves as an official announcement or record that something is available for transaction. For businesses or individuals selling products, property, or services, listing makes those offerings visible to potential buyers or tenants. In financial markets, listings on stock exchanges allow businesses to raise capital by offering shares to the public.
In contracts, a listing clause can specify the terms under which certain items or assets will be included, offered, or disclosed, ensuring that both parties are clear about what is being listed and the conditions of the listing.
Understanding listing through an example
A real estate agent creates a listing for a commercial property that is available for lease. The listing includes information about the property's size, features, rental price, and available lease terms. The listing is then published on the real estate agent’s website and shared with potential tenants.
An example of a listing clause
Here’s how a listing clause might appear in a contract:
“The Seller agrees to list the Property for sale with [Insert Real Estate Agency] at a price of $[Insert Price]. The Property will be listed on the Multiple Listing Service (MLS) and on [Insert Relevant Platforms], with the terms of the sale, including any price adjustments, subject to mutual agreement between the Seller and the Buyer.”
Conclusion
Listing is a crucial process for making properties, goods, or assets publicly known and available for transaction. Whether in real estate, business, or financial markets, a listing ensures that offerings are visible to potential buyers or investors. Including a listing clause in contracts helps define how and where the items or assets will be listed and ensures clarity on pricing, availability, and terms of sale. A well-defined listing clause can help avoid disputes and streamline the transaction process.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.